Filling your gas tank has become one of your biggest expenses and will go higher. If you drive to work each day, run the kids here and there, runs recreational vehicles, will agree that our gasoline expenses are busting the family budget each month. Oil company charge cards that offer discounts at the pump may seem like a great way to cut expenses but these gasoline charge cards can be one of the most expensive solutions compared to traditional credit cards. If we watch the news programs on a regular basis, there is no doubt that prices at the pump will get much higher in the years to come simply because of world supplies of oil that are not in our control. You can bet that the price per gallon will soon pass the $5.00 per gallon level in every areas of the United States. It is no surprise that we are all are looking for ways to save money at the pump. Very popular right now is the gasoline charge card but if you look closely, these cards can strip you of what you save when you fill up.
If you maintain a balance in any amount each month, they will cost you money in interest and fees. Oil company charge cards are no different than regular credit cards. Even with excellent credit, (the interest you pay|your gas card interest rate still could be as high as 27%. Because of that excessive interest, any initial savings at the pump will quickly vanish. In fact, gasoline will cost you more than if you just paid cash when you fueled up.
Don't be in a hurry when you are choosing a card because many of these cards do not actually offer cash back. Many only offer shopping discounts, weird gift cards, or overpriced products, tied to how much you spend on gasoline with their card. Frankly, most of the bonus products can be bought much cheaper at local discount stores. Some of the gift cards are limited to stores and restaurants that may not even be in your local area. Others are for use at websites online that sell products you might never buy locally or would have no use for at all.
For me, when choosing a gasoline credit card, the most important factors to compare are interest rates, fees, rewards, and ease of use before making a final choice. My choice was to not get a gas card because I got a much better deal with a traditional card.
I found that some gas charge cards could only be used at their company locations. I doubt that you want to be in a city where your card cannot be used because the chain does not have locations there. Some companies offered rebates but only for a limited time. Most had similar fine print that limited the long-term advantages of the card. All said and done, a bad deal for me.
The average cash back rate I found was 3 percent. Discover offers 3 percent but limits how much you get back anually. You can use the card for all other purchases and earn other perks. I found cards with slightly higher cash back rates, some lower, but every one of those had some serious limits. Read every offer a few times over.
Many convenience store chains offered an additional percentage discount on non-gas purchases at their outlets. Many cards only allowed me to start earning rewards after I topped a minimum level of spending. It can be very tricky wading through the details. Make sure you grasp the terms and conditions completely before making a selection.
The biggest issue for me was the interest rate, or, annual percentage rate (APR). All oil company cards have excessively high rates when compared with standard credit cards. In many cases, the interest rate is actually double or triple! If you carry a monthly balance like I do, that interest will mostly erase any savings or rewards you thought your would get. With a standard card I still pay interest but it is less than half what the gasoline card would have hit me with. I figure I am money ahead.
I also refuse to pay an Annual Fee for any card or be charged a fee for not using the card. Some card providers do this and they do not have my business. They make money from the merchant every time I charge something. The interest they charge me and the fee they charge the merchant is ample profit for them.
If you maintain a balance in any amount each month, they will cost you money in interest and fees. Oil company charge cards are no different than regular credit cards. Even with excellent credit, (the interest you pay|your gas card interest rate still could be as high as 27%. Because of that excessive interest, any initial savings at the pump will quickly vanish. In fact, gasoline will cost you more than if you just paid cash when you fueled up.
Don't be in a hurry when you are choosing a card because many of these cards do not actually offer cash back. Many only offer shopping discounts, weird gift cards, or overpriced products, tied to how much you spend on gasoline with their card. Frankly, most of the bonus products can be bought much cheaper at local discount stores. Some of the gift cards are limited to stores and restaurants that may not even be in your local area. Others are for use at websites online that sell products you might never buy locally or would have no use for at all.
For me, when choosing a gasoline credit card, the most important factors to compare are interest rates, fees, rewards, and ease of use before making a final choice. My choice was to not get a gas card because I got a much better deal with a traditional card.
I found that some gas charge cards could only be used at their company locations. I doubt that you want to be in a city where your card cannot be used because the chain does not have locations there. Some companies offered rebates but only for a limited time. Most had similar fine print that limited the long-term advantages of the card. All said and done, a bad deal for me.
The average cash back rate I found was 3 percent. Discover offers 3 percent but limits how much you get back anually. You can use the card for all other purchases and earn other perks. I found cards with slightly higher cash back rates, some lower, but every one of those had some serious limits. Read every offer a few times over.
Many convenience store chains offered an additional percentage discount on non-gas purchases at their outlets. Many cards only allowed me to start earning rewards after I topped a minimum level of spending. It can be very tricky wading through the details. Make sure you grasp the terms and conditions completely before making a selection.
The biggest issue for me was the interest rate, or, annual percentage rate (APR). All oil company cards have excessively high rates when compared with standard credit cards. In many cases, the interest rate is actually double or triple! If you carry a monthly balance like I do, that interest will mostly erase any savings or rewards you thought your would get. With a standard card I still pay interest but it is less than half what the gasoline card would have hit me with. I figure I am money ahead.
I also refuse to pay an Annual Fee for any card or be charged a fee for not using the card. Some card providers do this and they do not have my business. They make money from the merchant every time I charge something. The interest they charge me and the fee they charge the merchant is ample profit for them.
About the Author:
There is no need to pay excessive interest on gasoline purchases or anything else for that matter. Visit the blog, Annual Credit Report Scam, for Free videos, articles, and discussion to help you save credit card interest. It's a Free blog. No signup for anything. Check it out.
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